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Increasing reach through distribution strategies
Channels are the access points that allow a business to reach its customers. A business has both sales channels and marketing channels, which may sometimes intersect.
Marketing Channels
A marketing channel allows a business to reach its customers across a variety of mediums – such as email, internet, tv, radio, billboards, trade-shows and text messaging.
These channels are an important element of controlling the firm’s narrative and messaging. It allows a business to bombard the customer or prospective customer with information that will help the firm to acquire or retain customers.
An important marketing channel strategy is its digital marketing strategy, which helps a firm manage, track and implement a marketing campaign to target both new and existing customers for a relatively low cost while providing deep transparency into customer touch points, areas of interest, buying behavior and browsing behavior.
These channels are an important element of controlling the firm’s narrative and messaging. It allows a business to bombard the customer or prospective customer with information that will help the firm to acquire or retain customers.
An important marketing channel strategy is its digital marketing strategy, which helps a firm manage, track and implement a marketing campaign to target both new and existing customers for a relatively low cost while providing deep transparency into customer touch points, areas of interest, buying behavior and browsing behavior.
Sales Channels
A sales channel is where a customer purchases a company’s products or services. While a marketing channel strategy may be largely driven by the business, a firm’s sales channel strategy is largely dictated by its consumers.
Due to restrictions on buying certain products, a life science customer may have to purchase equipment and supplies through an intranet punch-out system managed by its employer. Alternatively, customers of technology products may want to purchase a printer only after talking to a sales specialist at a big-box retailer.
When it comes to sales channels, businesses tend to listen to what the customer is asking for.
Other references to a sales channel include a distribution strategy and a commercial strategy. A distribution strategy is how a business leverages direct and 3rd party distribution partners to deliver products into the hands of its customers. A commercial strategy is a much broader discussion that includes combining marketing and sales to generate brand awareness and drive sales.
When discussing commercial strategies, it is helpful to understand the competitive landscape of the firm combined with its capabilities and potential for revenue capture.
Due to restrictions on buying certain products, a life science customer may have to purchase equipment and supplies through an intranet punch-out system managed by its employer. Alternatively, customers of technology products may want to purchase a printer only after talking to a sales specialist at a big-box retailer.
When it comes to sales channels, businesses tend to listen to what the customer is asking for.
Other references to a sales channel include a distribution strategy and a commercial strategy. A distribution strategy is how a business leverages direct and 3rd party distribution partners to deliver products into the hands of its customers. A commercial strategy is a much broader discussion that includes combining marketing and sales to generate brand awareness and drive sales.
When discussing commercial strategies, it is helpful to understand the competitive landscape of the firm combined with its capabilities and potential for revenue capture.
Insight
If you’ve ever worked in sales and marketing, then you know that there is confusion about who owns what aspects of the sales and marketing channels. The correct answer is both. Marketing often acts as the internal function that defines a commercial strategy and sales are the team that execute on that strategy. However, one would not exist if not for the other and so creating a commercial strategy requires alignment and consensus by both functions.
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